Kathmandu: Nepal’s income from the export of information technology (IT) services has seen a significant boost, rising by 20.28 percent in the first four months of the fiscal year 2024/25, compared to the same period last fiscal year. According to data released by Nepal Rastra Bank (NRB), by mid-November, the country had earned Rs 6.69 billion from IT service exports, up from Rs 5.56 billion during the same period last year.
The breakdown of earnings shows that Rs 1.72 billion came from telecommunications services, Rs 4.96 billion from computer services, and Rs 9.3 million from information services. During the review period, Nepal imported IT services worth Rs 1.19 billion, resulting in a surplus of Rs 5.50 billion from the export and import of IT services. The country imported Rs 456.8 million worth of telecommunication services, Rs 684.1 million in computer services, and Rs 52.1 million in information services.
Nepal’s export of IT services, including software products, apps, and other technology-related services, has been growing in demand internationally. However, experts point out that the actual income from IT service exports may be much higher than the official figures, as many service providers receive payments through informal channels.
Reports suggest that some of this income is kept abroad, with authorities suspecting that a portion of it is being brought into the country through informal channels like hundi. Due to tax compliance issues and bureaucratic hurdles, many exporters do not formally report their earnings, especially when the income comes from personal or outsourcing sources.
A study by the Institute for Integrated Development Studies (IIDS) estimated that Nepal earned USD 515 million from IT service exports, with about half of this income coming through informal channels. The study found that approximately 66,500 IT personnel in Nepal are exporting services, and if the informal earnings were brought into the formal system, it could significantly contribute to Nepal’s economy.